Exchange rate open a German newspaper. It is difficult to turn a blind eye on the news of the pound plunge.
The Brexit made the German media very confused. The relevant news may not appear on the front page. Even if there is content, most of the content regretted the British withdrawal from the EU and stressed that maintaining the operation and integrity of the EU’s single market is the first Important tasks, as for the EU’s position, is depicted as pragmatic and skilled in computing.The exchange rate is getting better.
The EU member states have begun to respond to various realities after the Brexit and give optimistic forecasts on the economic prospects in the Euro area. In contrast, the response from the United Kingdom has been somewhat confused and the economic outlook is also poorer.
It is not hard to see why Berlin, Paris and other EU partners are bullish the euro, bearish pound, exchange rate after all.
According to Richard Jones, a foreign exchange analyst at Bloomberg, German companies have held the same position since the Brexit vote and considered the EU market the most important. This is in connection with Michel Barnier. EU’s chief representative for the negotiation on Brexit negotiations in the EU Trade agreement statement. Exactly the same.
Reports from the British media are in stark contrast to the reactions of EU member states. British newspaper headlines are always full of liquidation “treason” issue, which is quite consistent with the disagreement within the British government.
In particular, British enterprises are desperately seeking the government’s trade protection after the EU’s withdrawal and reducing the uncertainty exchange rate. However, so far, progress has been very limited.
However, not everyone believes the pound will slide against the euro. According to a Bloomberg survey of analysts, by 2018, the exchange rate of the euro against the pound should be 0.89, not far from the current situation.
For the British people, this negotiation is probably a game of emotion in the debate. It seems that the money market will reward the former, punishing the latter.
Against the yen higher Wednesday, traders expect the U.S. tax reform bill will pass and wait for the Bank of Japan’s policy meeting. The dollar index, which tracks the movement of the dollar against a basket of six currencies exchange rate, edged up to 93.458. The dollar rose to 113.29 yen, 112.86 on Tuesday. The euro edged up slightly to 1.1848 U.S. dollars at 1.1844 late Tuesday.
Congress passed a 1.5 trillion-dollar tax cuts exchange rate, will cut corporate taxes. Senate passed the bill on Wednesday morning. In the afternoon, it was also passing through the House of Commons.
The tax reform bill was expected to be passed, and investors were selling the facts. It is also worried that the bill may push the economy worse than expected exchange rate.
Overall, major foreign exchange transactions dwindled before Christmas and New Year holidays.
Investors will pay close attention to the Bank of Japan’s policy meeting. President Toshihiko Kuroda recently said that the central bank’s particularly accommodative monetary policy may have the opposite effect.
Analysts said investors finally understand that the tax reform bill may not support the economy as expected, but will significantly increase the U.S. budget deficit.
However, analysts expect Japan’s current monetary policy will remain unchanged. If there is any change, it may be in the new year when the Bank of Japan updates its economic forecast.
In economic data, existing home sales in the United States rose 5.6% in November to an annual rate of 5.81 million. The highest level since December 2006.
Despite the uncertain trend of a sharp return of Taiwan stocks by foreign investors, the recent selling pressure has converged. Taiwan stocks weighted index continued to fluctuate above the level of 10500 today (21). From the foreign exchange market, the trend of the New Taiwan dollar seems to be ahead of schedule. January market, although today only the highest appreciation of more than 3 points, but midday has come to 29.959 yuan, continued to hit nearly 1 month exchange rate high.
0.8 points out, then turned to appreciation, the intraday continued the strong pattern. Up to 29.959 yuan. Compared with yesterday’s high of 29.964 yuan is also high. The midday of the New Taiwan dollar against the dollar temporarily closed at 29.963 Yuan. Taipei foreign exchange brokerage company worth 354 million US dollars.
Some foreign exchange holders pointed out that a few days ago foreign funds have already remitted part of their funds. At the moment, foreign capital is returning. In addition, there is a need for exchangers to exchange foreign exchange before the end of the year. Although the volume can reducing today compared with yesterday. Maybe weakened.
There is not much doubt over the performance of Taiwan stocks. Even if there is still some concern about the exchange-rate noise in the market. Exporters’ stock prices may actually continue to rise this year driven by the influx of funds.
Therefore, in recent days when the Taiwan dollar continues its downward trend. Many parties still actively maintain the index at about 10,500 after the settlement of Taiwan Stock Index. The January market is brewing.